A contingent liability is recorded in the accounting records
A)if a reasonable estimate of the expected loss can be determined and if it is probable.
B)if the contingency has not already been disclosed in the notes to the financial statements.
C)if it will possibly become an actual liability,and the exact amount is unknown.
D)under no circumstances.

Question

Quizplus · Accepted Answer

A contingent liability should only be recorded in the accounting records if the following two conditions are met: 
1. A reasonable estimate of the possible loss can be determined 
2. It is probable that the liability will be incurred.

A Contingent Liability Is Recorded in the Accounting Records